No ‘panic situation’ in banking sector: Corporation bank

No ‘panic situation’ in banking sector: Corporation bank

Agency News

Ahmedabad, Oct 5 : Leading public sector bank Corporation bank on Saturday claimed that amid the 'slowdown' like situation in the country, various government prompted initiatives by banks and other financial institutions including the Non Banking Finance Companies (NBFCs) in the recent times did not indicate any 'panic mode' like situation for the banking sector.

Talking to newsmen on the occasion of a customer outreach campaign here led by Corporation bank and participated by 27 public sector banks and other financial institutions in the wake of the coming festive season, Circle General Manager of the bank M V Balasubramanyam and Deputy General Manager V Vasudevan said that such events were not indicative of any 'panic situation' in the banking sector in the wake of the current economic slowdown.

"In fact it is a stimulus of sorts. It is a win-win situation for both the banks and financial institutions and the customers. During such events the banks come to know about the new/changing requirements of the customers while the customers learn about various new initiatives by the bank," the CGM said.

To a query he said that once the recovery of loans/NPAs expedite, the situation in the banking sector would improve. "The government is taking various pro-active measures for it including making appropriate changes in the laws," he said.

He said that the merger of banks was a good decision for the banking sector. He also claimed that such steps would not reduce the job opportunities in banks in any way.